North Carolina Representative Patrick McHenry said that it took four days for Donald Trump and his team to reverse “damaging” cryptocurrency policies. He credited Commissioner Hester Peirce and Representative Mike Flood for their efforts against SAB 121. McHenry made this statement in a January 24 post on X.
“It’s only taken 4 days for Donald Trump and his team to undo the damaging policies that targeted crypto over the last 4 years,” said Patrick T. McHenry. “Still work to be done but this is a great start. Credit to Commissioner Hester Pierce and Rep Mike Flood for their tireless work to highlight the disaster that was SAB 121.”
McHenry’s comment was in response to an X post by Peirce, who said, “Bye, bye SAB 121! It’s not been fun,” referring to the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 122.
According to a report by JD Supra, the SEC has rescinded its Staff Accounting Bulletin (SAB) 121. This bulletin required companies safeguarding crypto assets to record them as liabilities on their balance sheets. The decision aims to align crypto asset safeguarding with the treatment of other financial assets and address concerns that SAB 121 made it financially difficult for banks to provide custodial services for crypto assets. The SEC’s move follows a formal investigation by the U.S. Government Accountability Office, which found that the SEC did not follow proper procedures in implementing the rule.
The SEC states that Staff Accounting Bulletin No. 121, published on April 11, 2022, offered guidance on how entities should account for obligations to safeguard crypto assets held for platform users. The bulletin outlined that these obligations should be recognized on the balance sheet, reflecting both the assets and corresponding liabilities.
McHenry represents North Carolina’s 10th Congressional District, which includes parts of nine counties in the state. Currently serving his tenth term, he is Chairman of the House Financial Services Committee in the 118th Congress. Previously, McHenry served as Republican Leader and Vice Chairman of the committee, according to Congress.gov.
